Climate change-induced economic impacts on tourism destinations:

Climate change-induced economic impacts on tourism destinations:the case of Australia

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Figure 1. Case study destinations within Australian continent.

Source: http://www.australia.com

Tourism in Australia• $68 billion to GDP• 853,000 = 8.3% Total employment [directly & indirectly] • 70% Domestic & 25% International= Regional & Rural • 2.6% Tourists arrivals increase p/a• 6.2% Outbound tourism increase p/a• 74% Domestic tourism• The 200o Sydney Olympics

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Source: http://www.australia.com

Climate change + Tourism

• ¾ of its CO2 - tourism transport sector • 4.95% of Global emissions

Climate• Affect the demand of tourism• Determinates the suitability of locations• Directly affects the environmental resources for

tourism

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Source: http://www.australia.com

Economic Model DevelopmentThe Garnaut ReviewCGE [Computable General Equilibrium] economicsIO [input – output] = Net effects in the economy

TERM* [The Enormous Regional Model] &The STCRC

[Sustainable Tourism Cooperative Research Center]

*Includes: industries, household sector, government, investment & overseas export.

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Figure 3. Domestic Sourcing

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Figure 5. Simulation procedure.

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Simulation Results

Percentage change as an annual average growth figure &

Percentage point change deviation from benchmarks

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Figure 7. Movements of real average wages (average annual percentage).

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Figure 8. Compositional changes of national GDP components (average annual percentage).

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Figure 9. GDPandGRP projections of tourism and non-tourism regions 2005–2020 (average p.a.%).

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Figure 10. Comparison of climate change impacts and its induced tourism impacts on regions.

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Figure 11. Net GRP impact of the induced tourism reduction for 2005–2020 (percentage point deviation).

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Consequences

Tourism demand reductionsJob losses Lower wage incomes [or increasing inequality]Further costs on the society

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What can help?

Domestic tourismAwareness of the government Policies to facilitate the transitionInvestment in climate change adaptation

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